SAL(SH:603970)2022-11-19 03:14Group 1: Company Overview - Zhongnong Lihua Biotechnology Co., Ltd. was established in 2009 and is the first company listed on the Chinese IPO market under the China Agricultural Production Materials Group, the largest agricultural production materials supplier in China, accounting for 10% of the national agricultural materials sales [1]. - The company has maintained steady annual growth since its establishment, with significant sales increases in recent years [2]. Group 2: Financial Performance - Sales reached CNY 6.6 billion in 2020 and CNY 8.8 billion in 2021, with a profit increase of nearly 30% year-on-year. The company expects continued growth in sales and profits for the current year [2]. - The company aims to double its performance and sales over the next five years [2]. Group 3: Business Segments - The company operates six major business segments, including two unique segments that cannot be replicated by other domestic agricultural suppliers: - Collaboration with international agrochemical companies to establish a joint sales platform, generating CNY 3 billion in sales last year [2]. - A service platform for domestic agrochemical enterprises, which supported 1,500 pesticide manufacturers and achieved CNY 2.5 billion in sales last year [2]. - The international business segment has seen significant growth, with pesticide exports increasing from over CNY 100 million five years ago to CNY 2.5 billion in 2021, with over 140 overseas registrations [2]. Group 4: Future Development - The company plans to focus on crop health services and has conducted over 10,000 promotional events in 2021 to improve farmers' application of agricultural chemicals [2]. - The company is also advancing into the seed industry, with plans to participate in cooperative projects and leverage its advantages in seed resources and distribution networks [3]. Group 5: Impact of COVID-19 - The pandemic has caused production halts and logistics disruptions, but demand remains stable due to the essential nature of agriculture and government focus on food security [3]. - The company has prepared for potential disruptions by enhancing its warehousing network, which has mitigated some logistical challenges [3]. Group 6: Pricing and Supply Chain - Raw material prices surged due to the pandemic, but the company managed to mitigate impacts through early stockpiling and strategic planning [3]. - The company is developing a pricing index for raw materials to enhance its influence in the industry and create a trading platform [3]. Group 7: International Expansion - The company has established subsidiaries in key agricultural countries in Latin America, including Argentina and Colombia, and plans to develop its presence in Brazil [5].